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Do Section 179 benefits apply to S corporations?

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manuel1959

New member
What is the name of your state? Florida

Do Section 179 benefits apply to S corporations?
I'm starting a boat rental and charter business. Can I take advantage of Section 179 benefits if I am set up as an S Corporation? The idea is to be able to deduct the cost of the equipment / boats
 


FlyingRon

Senior Member
Certainly. You can take it for a corporation, an LLC, or even a sole proprietorship. The key is that the asset qualifies (one of the listed class of items, that it's used primarily for the business, that you both purchased and put it into business use the year you are taking the deduction), etc... There's also some other limitations (notably, you can't take it in excess of your corporate income). Nothing precludes a corporation with S corp election from taking it.
 

LdiJ

Senior Member
Certainly. You can take it for a corporation, an LLC, or even a sole proprietorship. The key is that the asset qualifies (one of the listed class of items, that it's used primarily for the business, that you both purchased and put it into business use the year you are taking the deduction), etc... There's also some other limitations (notably, you can't take it in excess of your corporate income). Nothing precludes a corporation with S corp election from taking it.
And by corporate income, its your corporate profits. You cannot take a 179 deduction that results in a loss.

Which means that you probably won't get to 179 expense your first boats because you probably won't have the profits to do it your first year in business. Or, you may be able to 179 expense some of them and depreciate the others.
 

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